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Advisers demand Abbey Life renewal cash

Furious advisers have attacked Abbey Life for not passing on renewal commission to IFAs who have been left advising their policyholders after it closed its book to new business.

Advisers say that, by closing its books, Abbey has left many of its policyholders without anywhere to turn for advice, resulting in many looking to IFAs for help. IFAs are demanding they are paid renewal commission for servicing these policyholders.

But they say that Abbey is withholding renewal commission and leaving IFAs to pick up the bill for the abandoned clients without getting any proper remuneration.

IFAs claim in such cases they become the servicing agents and should pick up the renewal commission.

Harris Investment Management principal Alan Harris says: “It is totally out of order to not pass on renewal commission. Renewal commission has always been recognised as a servicing commission and it should be paid to whoever is currently servicing the client. There is no excuse for this. If you give ongoing advice, you should receive the servicing commission.”

Abbey Life has refusedto comment.

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